I can use the TV's Netflix application and have it output audio to the AV receiver via optical audio, but Tivo audio keeps playing so I have two programs' audio at once coming out of the receiver. (Only solution - a hack - is to play a recording on Tivo and pause it. I don't want to spend 5 years having to do that.)

If I buy an HDMI ARC capable receiver, can I hook it up as shown and expect the sound problem to be solved?

TIVO -> HDMI -> ARC Receiver -> HDMI -> TV

**
Basically, will the HDMI ARC feature recognize that the TV is returning audio to the receiver when I use its Netflix app and cut off Tivo audio automatically?
**

Note: I know I could just use the Tivo Netflix app, instead of the TV's. I already am doing that - we have two Netflix accounts (adults vs. kids) and I want to access both - one via Tivo and one via TV app.